Market View 7 October 2011

It was a good strong run-up yesterday and
as expected, I knew that there will be emails
and skype messages asking me the same
old question: Can I buy now?
Interestingly, I observed that many retailers
will only start buying when they see the all-green
sign while the seasoned market players will
start to grab stocks when there are blood all
over the market. This is a incorrect way of
dealing with Mr Market and it got to change.
Good money can be made while stepping on
the blood on the street. I did not coined this
saying, as this is an old time Wall Street quote.

Like what I mentioned yesterday, the current
surge is a rebound, and it is looking to be a
strong V-Shape rebound which is fast and
furious as you may observed with some stocks.
Most stocks will open higher, and some may
even gap-up again today. If you are just jumping
into the market, you are in with a higher price
and the higher risks that come with it. Seriously,
I believe there are still chances that the market
will come down after this rebound, but it is unlikely
that it will fall below the recent low.

Some readers want me to talk about STX OSV again.
Well, yesterday while it was surging, I mentioned
to a handful of skype readers that it will face strong
resistance at 91cts, and I was off by just one bid as
its day-high was 90.5cts and it closed at 89.5cts.
The stock had rebounded well after coming off the
IPO price of 79cts. I knew of readers who made contra
profits off the stock and some even got in at a good
price for investment purpose. Please practice good
money-management. It will likely break 91cts today
but it need to sit firmly above the level for any potential
of reaching the next hurdle at 96cts, or else it will test the
nearest support at 87cts.

Enter any position with a Cut-loss level & Trailing Stop,
and Please practice strict Money(Risk)-management.
If you don't like what you see in the market,
simply don't trade.

If you have Skype, and would like to chat with me about
stocks and all others, you can ring me at my
email address: stocklobang@yahoo.com
I have currently a couple of members skyping with me
everyday,and they are having good trading results.
See their comments here:
http://stocklobang.blogspot.com/feeds/comments/default

As usual,
Stay Alert but be Aggressive too.
Audentes Fortuna Juvat !!

市场生存座右铭: 风林火山 

别人笑我太疯颠，我笑别人看不穿